ANS: C DIF: 2 20. Amaranda and Bartolo consume only two goods, X and Y. They can trade only with each other and there is no production. The total endowment of good X equals the total endowment of good Y. Amaranda's utility function is U(XA, VA) ! minixA, yAl and Bartolo's utility function is U(XB, VB) max XB, yB. In an Edgeworth box for Amaranda and Bartolo, the set of Pareto optimal allocations is a. the main diagonal. b. both diagonals. the whole Edgeworth box. d. the edges of the box and the main diagonal. e. the edges of the box. ANS: C DIF: 3 21. Adelino and Benito consume only two goods, X and Y. They trade only with each other and there is no production. Adelino's utility function is given by U(XA, YA) 2xA 5yA and Benito's utility function is given by U(XB, VB) 2(6X8 15yB) 2. In the Edgeworth box constructed for Adelino and Benito, the set of Pareto optimal allocations is a. the main diagonal. b. both diagonals. C. the entire contents of the Edgeworth box. d. the right and left edges of the box. e. the upper and lower edges of the box. ANS: C DIF: 3